Corporate Social Responsibility A New Paradigm

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Corporate Social ResponsibilityA New Paradigm
Health and Safety at Work Day April 27 28,
2006, Valencia, Spain
Dia de la Seguridad y la Salud en el Trabajo 27 y
28 de abril del 2006 Valencia, España
Responsabilidad Social CorporativaUn nuevo
Paradigma

• Thursday, April 27, 2006

Maureen C. ShawPresident and CEOIndustrial
Accident Prevention Association5110 Creekbank
Road, Suite 300Mississauga, ON L4W 0A1Canada
www.iapa.ca
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Industrial Accident Prevention Association
Nuestra vision es
Vision
Un mundo donde los riesgos son controlados,
debido a que todos creemos que el sufrimiento y
la pérdida, son moralmente, socialmente y
económicamente inaceptables
A World where risks are controlled because
everyone believes suffering and loss are morally,
socially and economically unacceptable
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Our location in Canada/North America
Canada
Spain España
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Canadian Legislative Jurisdictions for Health,
Safety Environment
FEDERAL GOVERNMENT
PROVINCIAL TERRITORIAL GOVERNMENTS

• Legislation
• Canada Labour Code
• Canadian Environmental
• Protection Act

• Legislation
• Occupational Health Safety Act
• Environment Protection Act

• Jurisdiction
• 90 of Canadian workers including provincial and
  territorial employees
• covers all manufacturing sectors, mining,
  forestry, transportation and electrical
• covers municipalities, health care, education,
  and service industry

• Jurisdiction
• 10 of Canadian workers work under federal
  legislation including federal employees
• covers post offices, banks, grain elevators and
  telecommunications
• covers all inter-provincial transportation and
  inter-provincial projects

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Our Operation
Industrial Accident Prevention Association
Nuestras operaciones

• 89 years of health safety
• 230 committed, skilled employees
• 100 consultants / specialists
• 650 Volunteers

• 89 años en salud y seguridad
• 230 empleados comprometidos y calificados
• 100 consultores / especialistas
• 650 Voluntarios

ILO-CIS Collaborating Centre WHO Collaborating
Centre
Alone we can do so little together we can do so
much. Helen Keller
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Industrial Accident Prevention Association

• Solutions-based Consulting Technical Services
• Training and education
• Integrated Management System
• Over 100 products and services

• Soluciones basadas en Servicios de consultoría y
  técnicos
• Entrenamiento y educación
• Sistema Integrado de Dirección
• Más de 100 productos y servicios

Divide each difficulty into as many pieces as is
feasible and necessary to solve it. Rene
Descartes
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World Day for Safety and Health at WorkApril 28,
2006
2006 Decent Work Safe Work HIV/AIDS
The World Day for Safety and Health at Work is
intended to focus international attention on
promoting and creating decent, safe work. The ILO
aims to reduce the number of work-related deaths
each year, including those resulting from
HIV/AIDS, and to make work decent by eliminating
workplace stigma and discrimination related to
HIV/AIDS The commemoration of this day originated
22 years ago in Canada. The Canadian Labour
Congress declared April 28 as the annual day of
remembrance for workers who have been killed and
injured on the job
www.ilo.org/public/english/protection/safework/wor
ldday/index.htm
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Why do we need a special day?
Global Estimates
Work kills more people than wars !!!
Global Workforce 2.8 billion
people Work-Related Fatal Accidents and
Diseases 2.2 million Occupational
Accidents 270 million Work-Related
Diseases 160 million Global GDP (income)
Lost (Gross Domestic Product) 30,000 billion
USD Caused by Accidents / Diseases 4 (1,200
billion USD) Asbestos Fatalities 100,000
annually Hazardous Substances Fatalities 438,500
annually
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• We need to create a culture at work and in the
  communities where injuries, disease and death are
  morally, socially and economically unacceptable

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What is Culture?
A way of life, the sum total of ones
philosophy, beliefs, norms, values, morals,
habits, customs, arts and literature
Thomas, Vulpe Director Centre for Intercultural
Learning
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Health and Safety Culture

• Health Safety culture is not merely a companys
  safety program, policies and procedures it is
  the incorporation of health safety into the
  informal and formal parts of the company health
  safety must be integrated into every aspect of
  a companys way of doing business
• Health Safety requires strong commitment from a
  companys leadership. Leadership must
  continuously show that working in a safe
  healthy manner and maintaining a healthy
  workplace are core values
• Leadership needs to ensure that the necessary
  support and training are available employ
  effective communication, provide recognition,
  actively gather input and involve employees in
  decision-making, regularly tour the plant, attend
  safety meetings

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NASAs Cultural Flaws
How is the space agency ensuring the safety
health of future missions and their crews?

• If NASA has the scientific and operational
  processes right, are the astronauts safe?
• In the two weeks between launch and re-entry,
  NASA experienced a massive internal communication
  collapse emails that went unanswered and senior
  people on vacation
• In both the Challenger and Columbia cases,
  individuals recognized potential problems and
  reported them
• However, in neither instance, and in spite of
  NASAs stated culture of safety first, could they
  induce management to act. A clear case of
  institutional failure

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NASAs Cultural Flaws contd

• NASA has all the silent killers of collaboration
  silos, a hierarchy of fear, values that lacked
  clarity, and little vertical communication
• NASA reveals its naivety and the ugly truth that
  it remains an engineering organization that
  doesnt understand much about humanity
• Reforming culture in NASA is a massive
  assignment, requiring substantial doses of
  creativity and patience, the art of leadership

Jim Fisher is an associate dean, and professor of
strategic management at the University of
Torontos Rothman School of Management The
Toronto Star, July 13, 2006
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Corporate International Imperative
Work is an indispensable basis of society, and
furthermore the process of work should be
optimized by guaranteeing decent working
conditions for all.
The goal of the global community should be to
guarantee a universal minimum level in working
conditions and in occupational safety and health
for all working people with the help of global
strategies. The goal should be especially to
protect the most vulnerable groups, such as
children, migrant workers, disabled people, aging
workers, women and illiterate workers
Dr. Professor Jorma Rantanen, President of the
International Commission on Occupational Health
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Unless commitment is made, there are only
promises and hopes but no plans. Peter
Drucker
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What is Corporate Social Responsibility?Que es
Responsabilidad Social Corporativa?

• Corporate Social Responsibility does not replace
  good occupational health and safety in the
  workplace, it enhances and supports it

Responsabilidad Social Corporativa no reemplaza
la buena salud y seguridad ocupacional en los
lugares de trabajo la aumenta y la apoya
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What is Corporate Social Responsibility?Que es
Responsabilidad Social Corporativa?
Corporate Social Responsibility
Responsabilidad Social Corporativa

• its about ethical and moral leadership
• its about taking responsibility and being
  accountable locally, nationally and globally
• its about relationships with employees,
  customers, communities and partners
• its about being part of the ecology with no
  boundaries
• its about lifelong commitments to people.

• es acerca de la ética y moral del liderazgo
• es acerca de tomar la responsabilidad y ser
  confiable localmente, nacionalmente y
  globalmente
• es acerca de las relaciones con los empleados,
  cliente, comunidades y socios
• es acerca de ser parte de la ecología sin
  fronteras
• es acerca de los compromisos de por vida con la
  gente.

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Corporate Social Responsibility in a globalized
industrial world is about making the business
investment and the community promise sustainable
for the company and for the communities we
operate in, its people and environment. It
demands responsible governance based principles
of

• LEADERSHIP
• INTEGRITY
• RESPECT
• RELATIONSHIPS
• ITS ABOUT RESPONSIBLE CITIZENSHIP

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• Public perception of what social responsibility
  means is shifting from the vaguely defined good
  corporate citizenship to visible leadership in
  specific issues such as workplace health and
  wellness, sustainable development, human security
  and human rights
• Ultimately, a corporations first responsibility
  has to be to itself. The challenge is for the
  corporation to understand its place, and the
  responsibilities that go with it, in the broader
  scheme of things

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Traditional Approach

• The legally defined mandate of todays
  corporation is to pursue relentlessly and without
  exception, its own self interest, regardless of
  the often harmful consequences it might cause to
  others
• Currently, the most widely-used model in business
  is the stockholder model, championed by Milton
  Friedman who said the business of business is
  business Basically, profits are everything

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Traditional Approach

• In the good old days, corporate social
  responsibility meant a gently paternalistic
  attitude toward employees, discreet donations
  towards worthy causes and the company name on
  little league hockey (or football) sweaters.
  Those were the days, assuming they ever really
  existed, when growth was good. The Conference
  Board of Canada asserts that corporate social
  responsibility has now become a vital part of a
  long-term, comprehensive approach to business
  success

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The profit paradox Companies that exist only to
produce a profit dont last long. And companies
that dont pay attention to profits cant exist
to fulfill their long term purpose. Pursuing
profits without a higher purpose or pursuing a
purpose without profit are equally fatal
strategies.
Jim Clemmer Profits are a Reward, Not a Purpose
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• In our globalized economy..The obstacle to
  making any significant, broad-based progress in
  improving health and safety conditions, not to
  mention wages, hours, harassment and
  discrimination in the global economy, is not a
  lack of guidelines or management CSR
  command-and-control systems, or certification
  schemes. The real obstacles are

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• Lack of political will by corporations to refrain
  from taking advantage of vulnerable countries and
  desperate workers
• Lack of political will and perhaps lack of
  genuine options, on the part of governments in
  the developing world to enforce regulations and
  establish new ones
• Lack of resources (financial, informational and
  political) of sweatshop workers to know what
  their rights are, to know how to protect
  themselves on the job, and to be able to
  operationalize such knowledge

Garrett Brown, Industrial Safety Hygiene News,
September 2005
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European Alliance for Corporate Social
Responsibility
On March 22, 2006, the European Commission
announced the launch of the European Alliance
for Corporate Social Responsibility.

• The Alliance is built on the understanding that
  CSR can contribute to sustainable development,
  while enhancing Europes innovative potential and
  competitiveness
• We commend the European Commission and its
  members for this significant leadership in
  putting CSR on the global agenda

European Commission Press Release, March 22, 2006
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Ten Drivers of CSR
In 2002, the Conference Board of Canada examined
the rationale behind social responsibility
initiatives among Canadian companies. The
National Corporate Social Responsibility Report
Managing Risks, Leveraging Opportunities
identifies nine common drivers that are the
motivators. These are
Reputation and brand management CSR performance
accounts for 25 of the image and reputation a
driver for customer satisfaction Business risk
management expanding the scope of
decision-making to include non-financial areas of
corporate performance
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Ten Drivers of CSR

• Employee recruitment, motivation and retention
  71 of employees want to work for companies that
  commit to social and community concerns
• Access to capital retail and institutional
  investors are factoring values and CSR
  expectations into portfolio management
• Learning and innovation stakeholders can be
  catalysts for corporate innovation. Knowledge
  networks created through engagement can be
  fertile ground for the generation, development
  and implementation of new and innovative ideas

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Ten Drivers of CSR

• Cost savings and operational efficiency
  managing health, safety and the environment
  supports improved productivity and efficiency
• Competitiveness and market positioning ethical
  and green consumerism is creating opportunities
  for corporations that seek marketplace
  differentiation
• Social licence to operate establishing trust
  through positive relationships with local
  communities

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Ten Drivers of CSR

• Improved relations with regulators meaningful
  stakeholder engagement helps companies to
  navigate and expedite regulatory approval
  processes
• Organizational transformation and continued
  improvement commitment to transparency and
  public information disclosure

Conference Board of Canada, The National
Corporate Social Responsibility Report Managing
Risks, Leveraging Opportunities, 2002
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ISO 26000 ISOs Social Responsibility
Guidelines

• In June 2004, the International Standards
  Organization (ISO) started the multi-year process
  of establishing consensus guidelines on social
  responsibility for corporations and other
  organizations.
• The purpose is to provide practical guidance
  related to operationalizing social
  responsibility, identifying and engaging with
  stakeholders, and enhancing credibility of
  reports and claims made about social
  responsibility.
• ISO has signed a Memorandum of Understanding with
  the International Labour Organization (ILO) to
  incorporate the ILOs conventions and
  declarations into the ISO Social Responsibility
  Guidelines

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ISO 26000 ISOs Social Responsibility
Guidelines
If the ISO guidelines are to have any relevancy
at all, two elements are essential transparency
and worker participation

• The guidelines should encourage the development
  of sustainability reports that are made available
  to stakeholders
• There should be a feasible, effective means for
  workers in enterprises, or their representatives
  in non-government organizations, to contest
  errors or misrepresentation in the CSR reports

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When coal dust and methane gas exploded in the
southwest section of the underground Westray coal
mine in Plymouth, Nova Scotia, the immediate
effect was a devastating fire, a blast that
ripped the roof off the mine entrance and the
death of 26 miners. But the May 9, 1992 explosion
reverberated long after that date
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Westray Mine Public Inquiry
Final report of the inquiry entitled The Westray
Story A Predictable Path to Disaster was
released December 1997 with 74 recommendations

• The report identified the following shortcomings
• Failure of company officials to run a safe mine
• Failure of government departments to ensure that
  mine plans were followed and regulations enforced
• Inspectors, mine development staff and government
  officials were negligent
• Politicians were at fault

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Bill C-45
The Canadian Government enacted Bill C-45 on
March 31, 2004 that amends the Criminal Code of
Canada.
Key features of Bill C-45

• Broadens the definition of Organization to
  include a public body, corporate body, society,
  company, firm, partnership, trade union,
  municipality or an association
• Broadens the definition of representative to
  include director, partner, employee, member,
  agent or contractor
• Broadens the definition of senior officer to
  include any representative who plays an important
  role in the establishment of an organizations
  policies or management activities

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Bill C-45
Health Safety elements of Bill C-45 include

• Holding corporate decision makers responsible for
  health and safety
• Requiring them to take reasonable measures to
  ensure safety
• Establishing a higher standard of care for
  employees and the public
• Extending the responsibility to individuals who
  direct work
• Providing specific powers to the courts including
  probationary powers

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Purpose The charter is intended to support the
continuous improvement of healthy and safe
workplaces. It is founded on the principle that
effectively managing health, safety and wellness
is essential to the operation of a successful
business Participation in this charter is a
visible commitment from business leaders to
actively participate within a learning community
that provides and receives best practices for the
enhancement of employee physical, social, and
mental well-being. The benefits will be realized
as this learning is integrated into
organizational business strategies, systems, and
processes
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Growing Support

• New corporate models Virtue Matrix corporate
  model
• New International Standards ISO 26000 social
  responsibility guidelines
• New Legislation Canadian Bill C-45
• New corporate Initiatives Canadian CEO Health
  and Safety Leadership Charter

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Leverage Corporate CSR Opportunities
Understand the footprint your organization leaves
in the world around you . Assess your level of
commitment using the following framework

• Governance and management practices
• Human resources management
• Environment, health and safety
• Community investment and involvement, and
• Human rights

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Leverage Corporate CSR Opportunities

• Understand your options
• Figure out what you can do better. Conduct a cost
  / benefit analysis of doing things better versus
  just staying the course and build a strategic
  plan
• State your intentions
• Create a social responsibility policy or adapt
  existing vision, mission and value statements to
  reflect your organizational commitment. Involve
  your best people in the process and demonstrate
  top-level commitment

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Leverage Corporate CSR Opportunities

• Set Expectations
• Shift organizational efforts from achieving to
  exceeding the minimum standards set by regulatory
  agencies. Identify, establish and work towards
  more ambitious corporate standards of performance
• Create your own markets
• Stimulate commerce and development at the bottom
  of the Worlds economic pyramid the position of
  most workers in developing countries

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The World Pyramid
Purchasing power in US dollars
Most companies target consumers of the upper
tiers of the economic pyramid completely
overlooking the business potential at its base
the people at the bottom of the pyramid make up a
colossal market
20,000 plus
100
2,000-20,000
2,000
4,000
Less than 2,000
Population in millions
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Leverage Corporate CSR Opportunities

• Create smart partnerships
• Work with industry groups and/or other
  organizations to create and promote voluntary
  standards. Share your own successes with others.
  Seek out organizations that can help you achieve
  your social responsibility goals
• Encourage greater accountability at all levels of
  society
• Workplaces have to show responsibility, but so do
  individuals, communities, institutions and
  governments

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Leverage Corporate CSR Opportunities

• More transparency and accountability
• Just being socially responsible is no longer
  enough. Corporations have to make the process
  visible and accountable. Voluntary reporting is a
  core component of CSR

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Innovative Strategies for Safer and Healthier
Workplaces

• Los invitamos a participar
• de la Conferencia 2007 IALI
• que será realizada durante el
• 18, 19 y 20 de abril del 2007,
• en Toronto, Ontario, CANADA.
• Por favor, sírvanse folletos
• acá durante esta conferencia o
• visiten la página de Internet de IAPA
• www.iapa.ca

We invite you to attend the 2007 IALI
Conference April 18, 19 20, 2007 Toronto,
Ontario, CANADA Please pick up the brochure here
at the conference or visit the IAPA web
site www.iapa.ca
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• In organizations, real power and energy is
  generated through relationships.
• The patterns of relationships and the capacities
  to form them are more important than tasks,
  functions, roles, and position

Margaret Wheatly Leadership and the New Science



En las organizations, el real poder y energía
son generados a través de las relaciones. Las
pautas y la capacidad de formar las relaciones
son más importantes que las tareas, funciones,
roles y posición










Photo www.town.fort-smith.nt.ca.
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MUCHAS GRACIAS !!
Maureen C. ShawPresident and CEOIndustrial
Accident Prevention Association5110 Creekbank
Road, Suite 300Mississauga, Ontario L4W
0A1Canada Phone [phone]www.iapa.ca